Market Share Forecasting involves forecasting the total market and your own consumption, and estimating the share of the market. In the retailer to consumer model, what matters most is the shelf take-away. Marketing Strategies aim to maximize shelf consumption (and usage) and increase your own share of that consumption.
The ease in forecasting the total market for a particular product depends on the industry. It may be as easy as obtaining it from the external sources to estimating market estimates through a series of forecasts involving syndicated data and POS data.
Determining Market Share
Share estimates of the total market can be done as an objective or target estimates based on the promotional plans and budgets committed to achieving that share.
The other option is to forecast consumption independently and derive the share through two different estimations, namely the market and the consumption.
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